By: L.N. Reklai

May 9, 2017 (Koror, Palau) Counted as one of the accomplishments in the first 100 days of this administration is the Olbiil Era Kelulau’s approval of a resolution endorsing and supporting the proposed joint public-private partnership agreement to improve, expand and manage Palau International Airport.


The resolution endorses President Remengesau to complete negotiation of Concession Agreement, Financing Agreement and Shareholder Agreement but reserves its final approval until the amount of financing and terms and conditions are finalized.

President Remengesau expressed that country cannot immediately raise $30 million needed for such infrastructure improvement and leveraging the public-private partnership model was the best way to achieve the much needed airport improvement.

House Joint Resolution 10-8-2,HDI states that it expresses “support for and approval of the project to expand, improve and professionally manage Palau International Airport in a joint venture with Japan Airport Management Partners, facilitated by the financial support of the Japan Government through Japan International Cooperation Agency (JICA) and granting specific authorities necessary to ensure the success of the joint venture Concession Company established.”

Moreover the resolution endorses President Remengesau or his designee to execute and enter into contracts including Joint Venture Agreement between Republic of Palau and Japan Airport Management Partners, Concession Agreement(establishing a Concession Company, owned 49% by ROP and 51% by Japan Airport Management Partners which will renovate, improve, expand and manage Palau International Airport) and Lease Agreement (leasing the Landside facilities of Palau International Airport to the Concession Company for period of 20 years.)

Resolution authorizes Concession Company to set and revise appropriate airport policies, to set, revise and collect appropriate fees as set forth in the Concession Agreement.

Management of the airport by the Concession Company under the proposal is only restricted to the airport facilities (meaning the terminal management), and all other legal authorities remain under the national government, this according to Peter Polloi, advisor to the Airport Authority. [/restrict]